Caterpillar warns against 'mini-tender'

PEORIA, Ill., Jan. 4 (UPI) -- U.S. heavy-equipment maker Caterpillar Inc. urged shareholders to reject an unsolicited offer from an investment firm to buy shares at below-market prices.

"Caterpillar strongly recommends against stockholders tendering shares in response to this unsolicited offer," the company said in a statement.

Private investment company TRC Capital Corp. of Toronto offered Dec. 26 to purchase up to 1.75 million shares of the Peoria, Ill., company, The Peoria Journal Star reported.

The $58.25-per-share "mini-tender" offer was about 4 percent below Caterpillar's closing stock price that day.

Caterpillar stock was down 25 cents, or 0.41 percent, to $60.91 a share on the New York Stock Exchange in mid-afternoon trading Thursday.